Mergers and Acquisitions

Data Center Acquisition: Digital Bridge Acquiring Vantage Data Centers?

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Digital Bridge Holdings will acquire Vantage Data Centers Management from Silver Lake Partners for more than $1 billion, according to Reuters.

Digital Bridge Holdings owns multiple infrastructure and data center players -- including Mexico Tower Partners, Vertical Bridge, ExteNet Systems, Andrean Tower Partners and DataBank.

Take a closer look at that list and you'll notice that DataBank acquired C7 Data Centers in January 2017. That deal ranks among ChannelE2E's Top 100 Mergers and Acquisitions of 2016. It begs the question: Will the alleged Digital Bridge-Silver Lake negotiations result in DataBank swallowing Vantage? Hmmm...

Silver Lake has been exploring the Vantage Data Centers sale since at least October 2016, according to multiple reports. ChannelE2E has not independently confirmed the reported exit efforts.

About Vantage Data Centers

Silver Lake acquired the data centers from Intel in 2010 and rebranded the business at that time.

Vantage amended and upsized its bank facility in February 2016 from $275 million to $570 million. The financing was significantly over subscribed, the company said at the time.

As of November 2016, Vantage’s Silicon Valley campus includes four data centers totaling 51 megawatts (MW) of critical IT load, with an additional 24MW of expansion capacity under development. At the time, Vantage was developing a second Vantage Silicon Valley campus offering an additional 69MW of capacity.

Vantage also operates a 6MW data center in Quincy, Washington and planned to add four additional data centers to the campus at that time.

Recent Data Centers Mergers & Acquisitions

M&A activity across the data center ecosystem has been quite active in recent months. Among the example deals:

More deals could be coming. Chief among them: IBM may buy Lloyds Banking Group's data centers, according to reports earlier this month.

Complete M&A Coverage: Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section daily.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.